The National Company Law Appellate Tribunal (NCLAT) has dismissed the petition filed by traders’ body Confederation of All India Traders (CAIT) against fair trade regulator Competition Commission of India or CCI’s nod to Walmart’s $16-billion acquisition of Flipkart.
The Justice SJ Mukhopadhaya-led two-member bench concluded that as CAIT has failed to prove its allegations against CCI’s approval on Flipkart-Walmart deal, the petition gets dismissed.
While the appellate tribunal believes that the deal would add value to Flipkart’s platform, it further stated that CAIT didn’t even make Flipkart party in its plea, according to a Business Standard report.
This decision has come two months after NCLAT had reserved its judgment on the petition filed in January this year.
After taking the note of submissions made by both sides, the bench had said: “It will be open to the parties to file short written submission, not more than three pages, by January 29, 2019.”
In August 2018, CAIT had filed a petition in the NCLAT asking for the reversal of the Walmart-Flipkart deal following which Walmart informed about its completed deal and a 77% stake in the e-commerce company.
This development has come a few days after NCLAT had ordered CCI to initiate a probe against Flipkart for alleged abuse of its dominant position in the market.
Besides, this two-year-old Walmart-Flipkart deal has also been embroiled in between tax-related issues. A club of foreign stakeholders had recently approached the Authority of Advance Rulings demanding more clarity on capital gains taxes arising out of the deal.